Gujarat closes units' open access to power

Gujarat has temporarily stopped industrial units from purchasing power in the open market.

"Open access for short-term power purchases has been curtailed temporarily till the load on transmission lines eases," a Gujarat government official said. The state's power transmission network is overloaded as consumer demand climbs with the onset of summer.

"Due to a rise in load demand, leading to a grid constraint in the upstream network, it shall not be feasible to permit short-term open access to consumers in enclosed list with effect from March 20," the state-owned Gujarat Energy Transmission Corporation Limited (GETCO) said in a letter to industrial units.

Over the past year, industrial units in Gujarat had begun purchasing power on exchanges, which turns out to be cheaper than buying from state utilities. As much as 1,500 Mw of power is procured from outside Gujarat, as capacity in excess of 4,000 Mw idles in the state, according to government officials.

"The distribution companies in Gujarat charge Rs 6 per unit, while consumers get power at Rs 4 or so in the open market," said a government official who did not wished to be named. A big part of electricity from outside the state comes from hydroelectric plants that produce cheaper power and new thermal plants in Chhattisgarh, where the cost of transporting coal is significantly lower.

"Even in regions like Silvassa and neighbouring states like Maharashtra and Rajasthan, the difference in power tariff with Gujarat is around Re 1," said Rakesh Choudhary, executive director of the South Gujarat Textile Exporters' Association. Industrial units have been saving between Re 1 and Rs 2.50 a unit, depending on the amount of power bought on exchanges.